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A New Player In eSports Wagering Expects $13 Million In Revenues In 2021

Article by : Helen Sep 25, 2020

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Updated: Apr 6, 2023

Esports Entertainment Group, a company set out to take its piece of the eSports wagering pie, has released its organic revenue expectations for 2021 and 2022. In a presentation for its investors, the company shares the following revenue guidance: $13 million in the 2021 fiscal year (ending on June 30, 2021) and $25 million for the 2022 fiscal year (ending June 30, 2022).

In this presentation, the company also outlined its long-term revenue expectations regarding its eSports wagering platform, VIE.gg: $180 million. This figure is based on reaching a 5% global eSports wagering market share, the global gross revenue of which Esports Entertainment Group estimates to be $3.6 billion, provided that eSports’ share in the global online sports betting industry is believed to be 2.5%.

Now that we have completed several of the strategic milestones that we laid out in our roadshow, we are well-positioned for strong organic revenue growth. We additionally intend to aggressively pursue accretive acquisitions within each of the frameworks of our Three Pillar Strategy.

The Three Pillar Strategy Johnson refers to is the basis for the company’s business model. It focuses on three key verticals dominating, which is guaranteed to contribute to the overall revenue growth. These verticals are:

1. eSports entertainment, where Esports Entertainment Group is focused on organizing or partnering up with eSports tournaments and leagues;
2. eSports wagering, which the company is determined to become a strong player in with its own wagering platform VIE.gg;
3. iGaming and traditional sports betting, which the EEG has set out to enter by acquiring Argyll Entertainment earlier this year.

In addition to these assets, Esports Entertainment Group has also acquired FLIP Sports, a mobile app development company specializing in mobile gambling games. With this acquisition, the company has gained full control over its tech stack, making sure their operations will be running smoothly.

Furthermore, Esports Entertainment Group cites partnerships with Dignitas (which is among the most recognizable brands in the eSports industry), Allied Esports (an eSports entertainment company with considerable properties and content production facilities in its portfolio), HB Sports & Entertainment, and AKUR Capital (corporate financial adviser that specializes in working with iGaming operators) as its strengths.

In the investor presentation, the company also cites two key trends in the entertainment industry that it is determined to leverage: 1) eSports and video game consumption skyrocketing, especially among two demographics, generation Z and younger millennials; 2) legal online gambling expanding across the United States.

In April 2020, Esports Entertainment Group became the first online gambling company listed on the U.S. stock exchanges: it is now trading on NASDAQ under the symbol GMBL. With offices in New Jersey and Malta, it possesses gambling licenses in the UK, Ireland, Malta, and Curacao, allowing its products access to 149 jurisdictions around the world.

As COVID-19 shut down most traditional sports events, those who placed bets on them have turned to eSports instead. The eSports global audience is estimated to be as large as 518 million people in 2020 (300 million if China is excluded from the estimate), with the projected growth to 644 million by 2022.